February 2025

Cambrige Notes: Principles of Accounting: Format of Income Statement for Companies

By |2025-02-12T09:22:17+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Accounting for Limited Liability Companies: Income Statement

  • As already pointed out in our introduction
  • The structure of the Income Statement ( Profit and Loss part) prepared for limited liability companies such as Private Limited (PVT LTD) and Public Limited Liability companies
  • is especially different from those prepared for sole traders […]
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Cambrige Notes: Principles of Accounting: Example entries upon death or retirement of a partner

By |2025-02-12T09:25:49+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

  • We have already examined the entries required to record Goodwill in the books upon the death or retirement of one of the partners here
  • We will now look at an example to demonstrate the stages involved

Death/Retirement Example

Peter, George and Muchineripi have been in partnership for the past five years. They own a retail shop in Harare’s CBD where […]

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Cambrige Notes: Principles of Accounting: Incomplete and Single Entry Example 1 solution

By |2025-02-12T09:29:00+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

  • This the solution to our first example question on incomplete and single entry
  • First we need to calculate the Sales figure for the year ended 30 April 20×9:

Sales Figure Calculation

  • Then we need to ascertain purchases for the year:

Purchases Figure Calculation

Income Statement for the year ended 30 April 20×9

NB This is how arrived at the Miscellaneous […]

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Cambrige Notes: Principles of Accounting: The Revaluation Method

By |2025-02-12T09:32:01+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Calculating/Estimating depreciation: The Revaluation Method

  • When there are a few big fixed assets it is easy to:
    1. Ascertain the cost
    2. Estimate its useful life
    3. Calculate/estimate its depreciation
    4. Account for its disposal
    5. Calculate/estimate profit or loss on disposal
  • For each asset because it is worth the effort
  • There are times when […]
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Cambrige Notes: Principles of Accounting: General Journal transferring to new books

By |2025-02-12T09:35:24+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: General Journal transferring to new books

  • We have already looked at some of the uses of the General Journal
  • which is sometimes simply called the Journal or Journal Proper
  • We have also looked at an example where we made different types of entries into the Journal
  • Another use not illustrated […]
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Cambrige Notes: Principles of Accounting: Preparation of bank reconciliation statement

By |2025-02-12T09:38:45+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Preparation of bank reconciliation statement

  • We have already looked at what bank reconciliation statements are and why we need them
  • Here we will look at steps required to prepare them and their format
  • First it must be pointed out that the Bank Column in the Cash Book like all of […]
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Cambrige Notes: Principles of Accounting: The Prudence concept and the Business entity concept

By |2025-02-12T09:42:03+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: The Prudence concept and the Business entity concept

  • In another topic you were introduced to the idea of accounting concepts
  • These are the underlying principles that govern the accounting discipline
  • In this topic we will look at the following concepts:
  • The Business Entity Concept
  • The Prudence Concept

Business Entity Concept

  • You […]
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Cambrige Notes: Financial statements

By |2025-02-12T09:45:32+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Business Finance and Accounting: Financial statements/ Final Accounts

  • The accounting function exists mainly to record, analyse and present financial information
  • Presentation of financial information involves the preparation of what are known as final accounts
  • They are called final accounts because they are the last accounts to be prepared
  • They are also […]
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Cambrige Notes: The General Journal

By |2025-02-12T08:58:39+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: The General Journal

As already said there are several books of Prime Entry namely:

  •  The Sales Day Book
  • The Purchases Day Book
  • The Returns Inwards Day Book
  • The Returns Outwards Day Book.
  • The Cash Book

 

  • Each of these books is devoted to a particular type of transaction. For example all Purchases returns […]
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Cambrige Notes: Users of Accounting Information

By |2025-02-12T09:02:08+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

ZIMSEC Principles of Accounts Notes: Users of Accounting Information.

  • Users of accounting information can be divided into two groups:
  • Internal users and,
  • External users.
  • Users of accounting information are sometimes known as stakeholders since they are affected and in turn affect the concerned entity’s operations.

Internal Users

  • These are found inside the business entity itself and they include:
  • Owners– Determine […]
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